It is extremely important for online merchants to have secure payment processing systems in place for customers, especially because the number of online transactions (i.e., card not present transactions) is only increasing. While these transactions are incredibly convenient, they also have many risks naturally involved — specifically, for merchants, the risk of card not present chargebacks is very high.

Here are a few ways that merchants can increase their chargeback protection while still offering secure payment processing solutions that keep their customers protected:

1. First off, make sure to train employees about the risks of fraud and about the common signs of fraudulent transactions. Many fraudulent purchases can be prevented before they even take place, and there’s no such thing as being too careful.
2. Monitoring your computer system and payment system will help you understand the purchasing trends of your usual customers. For example, if you monitor when purchases typically take place, then you’ll immediately notice if there’s a sudden influx of purchases happening at an unusual time. Fraudulent purchases most often occur at night, outside of normal business hours, because the transactions are more likely to be processed before being detected.
3. Many small businesses choose to limit where they will ship items, and this can be a good option if the majority of your business is local (or, at the very least, domestic). It’s common for fraudulent purchases to be made with a card registered domestically and with the items shipped internationally. If you notice that the shipping address is foreign but the payment address is domestic, make sure to double-check with the payee that the purchase is legitimate.

No matter what, just remember that it’s important to prioritize your chargeback protection — not only for your business, but also for the safety of your customers.